There are undoubtedly many reasons why a loan should or should be used. Often, it’s just about bridging an unexpected financial bottleneck, because, for example, a major new acquisition is in the room. So one turns with a correspondingly positive expectation to his familiar house bank and is then confronted with the statement of his bank adviser, which means: Credit rejected ! The shock is great and often this rejection of the desired credit is difficult to understand. There are many reasons why a loan application is rejected. These result in most cases from legal requirements but often also from the general terms and conditions of the credit institutions. This often results in the reasons that prevent legitimate lending. But there are ways to counteract these rejection reasons in a further discussion with the bank and thus to increase the chances of a lending still taking place.
Increase the chance of credit with a second borrower
One of the best ways to increase your chances of getting a loan is to name a second borrower. Of course, the second borrower should also have a proven, secured income. On the one hand, this increases the chance of reducing the term of the loan through higher loan installments. On the other hand, repayment of the loan is still assured if a salary is lost. For this, the second borrower must be prepared to be liable for the loan in the same way as the first borrower. For this reason, close relatives or family members are primarily suitable as additional borrowers.
Secure a loan with a residual debt insurance
Another, well-proven means to increase the chances of a loan, is the use of a residual debt insurance. Although consumer advocates keep reminding them to avoid this insurance as far as possible, this is only half the story. The point in the residual debt insurance is that nothing immediately accept the offer of the bank for the conclusion of that RSV. Here it is also on the open market to look for a suitable insurance offer and to offer this in the wake of the bank as a hedge of credit. Because the meaningfulness of a RSV is undoubtedly given. Depending on the contractual option, it will pay installments in the event of unemployment, incapacity or death of the borrower.
Combine loans and increase credit lines
If already existing loans weigh heavily on the revenue and expenditure account, it may be worthwhile to repay them immediately with the help of the new loan. One speaks then of a debt restructuring. Due to the recent dramatic drop in interest rates, it is possible for a borrower to significantly reduce the cost of the old loan. At the same time one creates new financial scope for the additional loan amount. However, it is important to pay attention to any accrued prepayment penalty. This early repayment decision, which many banks demand for the premature repayment of the loan, often also means additional costs which have to be paid.